Monday, November 08, 2010

Protect Medicare

Republicans are still gloating over their election victory but even they cannot escape reality. They successfully mislead seniors that Obama will take away their Medicare benefits and promised to maintain, even expand, the current Medicare system. Now John Boehner announced that he would push " to repeal $550 billion worth of Medicare cuts BUT omits to explain how he would pay for such a repeal.
But instead of solutions this position creates more problems!!!

Politifact.com http://politifact.com/truth-o-meter/statements/2010/sep/20/60-plus-association/medicare-cuts-health-care-law-will-hurt-seniors-sa/ has pointed out the truth to counter the misleading "Medicare cuts" propaganda and summarized the FACTS as follows:

" Medicare, a government-run health insurance program, provides health care coverage for the vast majority of Americans over age 65. It accounts for about 12 percent of the federal budget. It's important to note that the law does not take $500 billion out of the current Medicare budget. Rather, the bill attempts to slow the program's future growth, curtailing just over $500 billion in future spending over the next 10 years. Medicare spending will still increase -- the nonpartisan Congressional Budget Office projects Medicare spending will reach $929 billion in 2020, up from $499 billion in actual spending in 2009....

Some of the savings are for relatively minor programs, such as $36 billion for increases in premiums for higher-income beneficiaries and $12 billion for administrative changes. The law directs a new national board to identify $15.5 billion in savings, but the board -- the Independent Payment Advisory Board -- is prohibited from proposing anything that would ration care or reduce or modify benefits. More significantly, there's also $136 billion in projected savings that would come from changes to the Medicare Advantage program. About 25 percent of Medicare beneficiaries are enrolled in a Medicare Advantage plan....

The Medicare Advantage program was intended to bring more efficiency from the private sector to the Medicare program, but it hasn't worked as planned. A June 2009 analysis from the Medicare Payment Advisory Commission said that the Advantage programs costs taxpayers on average of 14 percent more than the traditional Medicare plan. President Barack Obama has said repeatedly that the Medicare Advantage plan wastes public money that could be put to better use.
The health care law that President Obama signed in March phases out extra payments for Medicare Advantage programs over the next three to six years to bring their costs in line with traditional Medicare and institutes other rules for the program.....

Finally, there's $220 billion in Medicare savings achieved by reducing annual increases in payments health care providers would otherwise receive from Medicare. The reductions are part of programs intended to improve care and make it more efficient, such as reducing payments for preventable hospital re-admissions. These adjustments are aimed at hospitals, skilled nursing facilities, and home health agencies.
The Office of the Actuary for Medicare and Medicaid Services questioned in an April 2010 report whether these levels of savings are realistic, saying that some health care providers would become unprofitable if payments were reduced. The actuary's report suggests that Congress will intervene to change the payment formula to avoid health care providers dropping out of Medicare.....

The $500 billion aren't actual cuts but reductions to future spending for a program that will still grow significantly in the next 10 years .... the reductions are ways to make Medicare more efficient [including] benefits to seniors, such as improved prescription drug coverage. "


Sometimes FACTS trump FICTION!!! Still we have yet to find a solution on how to protect the Medicare program and most stake holders are avoiding to contribute their share to avoid the inevitable financial meltdown. Unfortunately, they a re busy to get ready for the 2012 campaign. What can you do? Speak up. Collaborate to offer workable solutions. Stop ideologues from dominating the agenda. Too much is at stake and we should not stay silent!

Yours

Bernd

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